Prices jump at the pump: Here's what to know

Summary

CNBC reporter Pippa Stevens reports on rising gas prices ahead of Memorial Day weekend, noting a 50% increase since the start of the year and diesel up nearly 60%. She discusses the lag in pass-through of higher energy costs to consumer goods, citing polyethylene prices doubling and the impact of the Strait of Hormuz blockade. The report is informational and does not present specific trade ideas.

• Average US gasoline price is $4.55 per gallon, a four-year high.
• Diesel prices have risen nearly 60% year to date, called a hidden tax on consumers.
• Polyethylene (common plastic) prices have doubled since the war in Ukraine began.
• There is a lag in how producers pass along higher energy costs to consumers.
• The Strait of Hormuz blockade disrupts fertilizer and other goods.
• El Niño may add further disruption to already stressed supply chains.
• Americans have spent an additional $40 billion on fuel since the war began.
• Wholesale energy prices (WTI ~$97.50, Brent ~$104) do not fully reflect downstream impacts.